Utilities

A shortage of electricity is among Nigeria’s greatest obstacles to growth. Chronic shortages affect all consumers, due to a legacy of underinvestment in maintenance and new facilities. The system typically functions at less than half of its installed capacity of around 12,000 MW. Successive administrations have made sector reform a priority, with partial privatisation of the national grid being a key pillar. After years of delays, there have recently been some key investments made, and Nigeria has emerged as a test case for how development finance institutions can help catalyse investment in power across the continent. Although meeting Nigeria’s massive and expanding electricity needs will require the development of its major offshore gas fields, in the short term the combination of reforms and local involvement continues to provide opportunities for investors willing to risk capital on the new, and as yet untested, systems now in place.

This chapter contains interviews with Babatunde Fashola, Minister of Power, Works and Housing; and Jay Ireland, CEO, GE Africa.